The Five Management Assertions Outlined in Generally Accepted Auditing Standards

question 36

Multiple Choice

The five management assertions outlined in generally accepted auditing standards include all of the following except:

• A) rights and obligations.
• B) materiality.
• C) existence and occurrence.
• D) presentation and disclosure.
• E) valuation or allocation.

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Definitions:

Corrective Action

Steps taken to eliminate the causes of an existing nonconformity, defect, or other undesirable situation to prevent recurrence.

Rules and Standards

Defined as established guidelines and criteria used to manage conduct, processes, and procedures within organizations and industries.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates.

Leadership Style

Leadership style refers to the behavior and approach of a leader, guiding how they interact with their team, make decisions, and motivate people towards achieving goals.